Sunstone Scoping Study Points to Long-Life, High-Margin Bramaderos Gold-Copper Mine

Sunstone Metals Limited ( (AU:STM) ) has issued an announcement.

Sunstone Metals has released a scoping study for its Bramaderos gold-copper project in Ecuador, outlining a conventional single open pit operation feeding a 10Mtpa plant over an initial 23-year mine life. Based on a 3.6Moz gold-equivalent resource, the project is expected to produce 135,000 ounces of gold-equivalent annually over the first eight years, with life-of-mine output of 2.7Moz at an average all-in sustaining cost of US$1,499 per ounce after by-product credits.

Using a base gold price of US$3,500 per ounce, the study estimates a post-tax NPV at a 7.5% discount rate of US$0.9 billion and a capital payback period of 34 months, rising to US$1.9 billion NPV and 19-month payback at a spot gold price of US$5,000 per ounce. Management highlighted that the analysis excludes the project’s significant exploration targets, signalling substantial upside potential that could support a future Stage 2 expansion and enhance long-term production and cash flow as the company advances to a pre-feasibility study and continues exploration drilling.

The most recent analyst rating on (AU:STM) stock is a Buy with a A$2.10 price target. To see the full list of analyst forecasts on Sunstone Metals Limited stock, see the AU:STM Stock Forecast page.

More about Sunstone Metals Limited

Sunstone Metals Limited is an ASX-listed mineral exploration and development company focused on gold and copper projects, with its flagship 87.5%-owned Bramaderos project in Ecuador. The company aims to develop Bramaderos into a long-life, high-margin open pit mining and processing operation, targeting both gold and copper markets with significant potential resource growth.

YTD Price Performance: -41.57%

Average Trading Volume: 463,899

Technical Sentiment Signal: Strong Sell

Current Market Cap: A$79.38M

For detailed information about STM stock, go to TipRanks’ Stock Analysis page.